The Central Bank of the UAE has decided to keep the Base Rate applicable to the Overnight Deposit Facility (ODF) unchanged at 3.65%.
The decision follows the U.S. Federal Reserve’s announcement to leave the interest rate on reserve balances unchanged at its meeting held today.
The Central Bank also decided to maintain the rate for borrowing short-term liquidity through all existing credit facilities at 50 basis points above the Base Rate.
The Base Rate, which is linked to the interest rate on reserve balances set by the U.S. Federal Reserve, signals the overall stance of the UAE’s monetary policy and serves as the effective floor for overnight money market interest rates in the country.
